What is the future of the semiconductor industry in India?

Government initiatives and schemes for the Semiconductor Industry in India

The Semicon India Program has fortified India’s strides towards a robust semiconductor industry. The government allocating INR 760 billion to propel companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging, and design. This initiative aims to bolster Indias semiconductor ecosystem and telecom growth in India.

The India Semiconductor Mission (ISM), which is tasked with implementing and overseeing the Semicon India Program, is driving this initiative forward. The ISM handles application processes, conducts technical and financial appraisals, recommends applicant selections, and executes other responsibilities delegated by the Ministry of Electronics and Information Technology (MeITY).

Semiconductor Fabs Scheme: Under this scheme, the government pledges up to 50% of the project cost for establishing silicon-based semiconductor wafer fabrication facilities across different technology nodes in India. State governments or local bodies can extend additional financial backing. Applicants must commit to a minimum capital investment of INR 200 billion and demonstrate a minimum revenue of INR 75 billion over the preceding three financial years.

Display Fabs Scheme: Similarly, the government offers up to 50% of the project cost to design display fabrication units for manufacturing TFT LCD/AMOLED-based display panels. State governments or local bodies may provide supplementary financial support. Applicants are required to invest a minimum of INR 100 billion and exhibit a minimum revenue of INR 75 billion over the preceding three financial years.

Design Linked Incentive (DLI) Scheme: The DLI Scheme incentivises semiconductor design activities by offering financial incentives and support for design infrastructure over a five-year period. This scheme is accessible to companies owned and controlled by resident Indians, startups, and micro, small, and medium enterprises engaged in semiconductor design or linked activities.

Hiring activities in the Semiconductor Industry

In 2024, the semiconductor industry in India is witnessing a significant surge in demand for skilled professionals, with an estimated total demand ranging between 40,000 to 50,000 employees across various job roles. This reflects a notable 25-30% increase compared to the previous year, underlining the sector’s rapid growth and evolving needs.

India is set to generate an impressive 800,000 to 1 million jobs in semiconductor industry over the next five years, highlighting sustained growth and promising prospects within the semiconductor ecosystem. This anticipated expansion underscores the industry’s pivotal role in driving employment and innovation, offering substantial avenues for individuals aiming to enter or progress within this dynamic field.

The surge in demand reflects the industry’s increasing reliance on advanced technologies and the ongoing digital transformation across sectors. As the semiconductor market continues to evolve and scale, it presents compelling opportunities for skilled professionals to contribute to and benefit from its ongoing success and development. This growth trajectory underscores the significance of cultivating talent and expertise in this critical sector to meet the burgeoning demands of tomorrow’s technology landscape.

Final thoughts

India’s semiconductor industry is on a trajectory of significant growth, driven by substantial government investments and strategic initiatives. With a forecasted surge to US$100.2 billion by 2032 and ambitious job creation targets, Indias semiconductor ecosystem promises innovation, employment, and economic expansion. Initiatives like the Semicon India Program and the Semiconductor Fabs Scheme are crucial for nurturing indigenous capabilities. Skilled professionals are needed to capitalise on emerging opportunities, propelling India towards technological prowess and sustained economic prosperity.